tv Countdown to the Closing Bell With Liz Claman FOX Business September 9, 2014 3:00pm-4:01pm EDT
with apple. just announcing their watch, $349. not available in time for the holidays, very hard to believe there. i hope that you are making money today. don't go away, cheryl is here, and "countdown" starts now. ♪ ♪ cheryl: and hello, everybody, i am cheryl cheryl casone in for liz claman, we are continuing to follow the breaking news coming out of cupertino, california. we want to get you up to speed on apple as we continue to follow all of the headlines that continue to cross out of california. ceo tim cook is still on the stage right now. i want to show you this brand new video we just got on, and u2 is on the stage right now performing, of course, making their own news. but the big news is what's been coming out of apple and this company and how these gang
get -- gadgets are going to impact your life. you're going to be the judge here. we've learned what the iphone 6 is going to look like, what this device is capable of doing. it's got a super high definition video camera, it's got a slow mow feature on it -- slow-mo feature on it. you've got new technology that will allow you to pay for everything on the phone going to mcdonald's to get a burger, whole foods, whatever. they're calling this apple pay. a lot of applause coming out of the crowd there in california. we're going to go there live in just a moment. al melissa was just talking about this, you've got the smart watch that was unveiled. standing ovation. we've been talking about an iwatch for three-plus years. finally, finally the company brings out the iwatch. it's got a flexible retina display, it's made of sapphire, it's of interchangeable faces, straps, fashion was a big kind of question mark here. we also have apple's, of course, great unveil covered from every
angle for you. i want to bring in right now jo ling kent. she's standing by live outside of the apple event. jo, if you can hear me, it's cheryl casone, you are on camera, hello. we've also got lauren simonetti here in new york at the apple store, she's on fifth avenue right here in manhattan, a lot of the apple faithful have been out there all night. and we've also got equity analyst brian calella covering every breath, every move tim cook makes. i can't wait to the see what he's going to tell me about today. let's begin with jo standing by in tuber tee know. -- cupertino. of course, correct me if i'm wrong, the watch seems to be the biggest splash so far, that and the camera on the iphone. >> yeah, that is absolutely correct. the i watch is what they were expected to deliver, and tim cook did. he said it's their most personal device ever. and be as you mentioned in the top of the show, it includes a lot of interesting features.
but what is really key here for the apple watch to succeed -- which, by the way, it costs $349, and it will be released in early 2015 -- the key to its success is how it will be used. and apple is already trying to jump out front of that problem, and they've already partnered with american airlines and starwood to help open your hotel room key and register and check in for your flight. there's a lot of fitness applications on this as well. the executives at apple saying that this fitness opportunity on the iwatch run a mile long. i does everything we expected it to do. the real question is why are they skipping the holiday season? is why not put out that iwatch faster? they've already clearly designed a lot of different prototypes for it. of course, the stock was reacting relatively positively to the situation, but overall very impressive. we have to point out there were a lot of apple staffers inside that auditorium, so it wasn't necessarily journalists leaping to their feet.
cheryl: well, and i do want to point out there was a lot of talk on the blogosphere that there might be production delays because of some components and issues out of china. that's something you've talked about before. isn't that a possibility in the delay on the watch? >> yeah, certainly. there's a lot of new technology, the four-piece sensor that's on the back of the watch that directly connects with your skin is custom made for apple. it's certainly possible that there are production delays. there were production delays for the iphone 6 as well that certainly has not seemed to affect its release date, coming september 19th. cheryl: coming out with the metal polishing as well. stand by if you don't mind. we're just being told that tim cook has just left the stage, so we're talking two hours, four minutes of tim cook and what really some are saying was a make or break moment for him as ceo. we're going to talk to brian about that this just a moment. here in new york, anyway, people have been lining up outside
apple stores really since last month. they've been trying to to get ahold of the gadgets. you've got lauren simonetti live from the flagship store on fifth avenue. let's talk about, first and foremost, is there a lot of excitement about the iphone 6? was it the watch? what were people excited about there? >> boy, has the discourse changed. it was all about iphone 6 until the announcement of apple watch. i'm joined by two gentlemen right now. edmund, you can't wait to buy the apple watch, you told me. >> cannot wait to buy the apple watch. it's one of the newer things i've seen. they haven't come out with a watch yet, and i'm interested to see what it's all about, for sure. >> and you would definitely spend $350 to start on it? >> i would definitely spend $350 for an apple watch. >> legitimately excited. and like you said, apple's first new products category in four years. really quickly, jason has been online, what are you most
excited about? >> the iwatch, for sure. >> the apple watch. i couldn't even set this up if i tried. no more iphone 6 talk. cheryl: we're talking about that, lauren, and stand by just for a second. i want to keep you guys there, but i want to look at the stock really quick. the stock actually went above $100 a share right after the iphone 6 was unveiled, gave up some of the gains. i want to talk to brian about that. you've got about $87 as a target on that stock. do you think you're going to up the target now that what you've seen coming out about the watch and all the excitement? >> well, we still have to run through the numbers, so we're not exactly sure what we'll come out with at this point. certainly our bearishness, we went from very bullish to very bearish very quickly, the stock ran up 32% in the last six months, so we're a little cautious. we know iphone 6 is going to be a good product. there wasn't with a lot of surprise in terms of what came out on the iphone front, but really in order to be buyers,
they have to have a tremendous launch. today was the first step, but you need terrific opening weekend sales, a great forecast for the december quarter, you need something well above 60 million units for that december quarter. those are very high targets. it implies tremendous growth from a year ago. it's going to be difficult for apple to hit those targets, so they could certainly do it, it's possible, but we exhibit a little bit of caution. cheryl: right. i do want to go back to jo ling kent out in california really quick and talk about something that the company itself was pushing forward, and that was the headlines crossing a about the camera on the iphone 6 and the iphone 6 plus. now, to brian's point, maybe the iphone 6 isn't going to be the be all, end all here, but out in california, jo, all the talk about the fact that the performance of a camera so incredible, is that really a top selling point do you think, jo, for the iphone 6? >> for the iphone, cheryl, i think you point out something very sail cent here. if you compare the camera to any of the android devices despite
the fact that android dominates globally, the iphone really does take the cake. they spent a lot of time, at least 20 minutes, talking about the photo capabilities. it's going to be 8 mega pixels and also be able to have facetime now on both sides of the camera. so that's a new improvement. it'll be able to focus even faster, some of the photos will be warmer in color. so from everyone from the professional photographer to the instagram enthusiast, this is a big development, and it always has been a top seller. i expect hearing from analysts right now it will continue to be for 6 and 6 plus. cheryl: brian, that is a really good point about iphone. if you look at the ancillary apps that go with an iphone 6, all these crazy apps that people are using for video, and this is what the kids are doing, does that mean this adds more value to iphone because sales haven't been stellar for iphone if you compare it to destroyed devices. >> sure. well, you know, i think apple is really the premium device, and i
think we expected with an iphone 6 and the 6 plus you expect improvements all across the board, faster, thinner, better battery life, and camera is a big selling point versus android. the real competition, you know, the real reason android is doing so well is because it hits the low end and the mid range of the market where apple doesn't play. apple might have come out with the best premium phone on the market. that might not matter if it's a there are 650 phone versus buying a $100 phone in emerging markets or a $300 phone in the u.s. or getting a free android can. apple's biggest competition is really price and that low end competition eating it up. cheryl: right. let's talk to lauren simonetti real quick because we've heard a lot of talk in these big events when you see everybody lining up in an apple store that a lot of these people are actually paid to be in line. if you talk to anybody there who's paid and who's paying them? >> oh, loaded question, cheryl. slots seven, eight and nine are
selling them for $2,000 a pop, one, two, three, four, five and six aring being paid to be in l. they work for a company that has them wearing these green sweatshirts, and they've been here since august 31st. so not only is it part of their job, they also get the i phone 6 for free for being here. and they're absolutely fine with not going home tonight each though you can preorder the devices on the 12th. they'll stay the extra couple of days or extra ten days -- cheryl: are they selling something? i didn't see the shirts, i'm sorry. are they marketing a company or what? >> they are -- yeah, the company, here, i'll give them some press, cheryl, they're called rav power, and it's a battery technology. they're a great group of guys, very knowledgeable about iphone everything, fanatics, actually, so they're not necessarily selling the product today, but they are promoting it. and like i said, a bunch of them have been online, one of them coming in from hong kong. cheryl: i have to tell you, lauren, this is one thing they
kind of need to get on the ball with, and that's to update their web site. apple's web site still not showing anything new. it's over, going to be back. we're updating the apple store right now. now that tim cook is off the stage, maybe he can start sixing that web site. [laughter] -- fixing that web site. guys, thank you very much. jo, lauren, brian, appreciate it. guys. just pointing that out. all right, well, we're going to continue to follow any developments coming out of apple and california. we're going to break in with any news that we get. we also, of course, are looking at the stock. shares of apple higher, but the overall market is actually under pressure right now. watching trading to the downside, you've got the dow on track for its first back to back losses in more than five weeks since early august. let's get to our floor show. traders at the new york stock exchange, cme group and, of course, the nymex. teddy, let's talk about the market overall. i was reading some commentary that a lot of investors are starting to look overseas because they're not quite buying the u.s. rally. >> well, i think, i think,
actually, in the introduction you kind of said it all. the market's been strong for four or five weeks. we've really not seen any sort of pullback. the world is sort of coming unglued a little bit around us. the markets haven't quite reacted to it. we've seen the softness in oil and energy which is if you look at past selloffs in the market, when the energy sector as a sector gets weak, the rest of the market is not usually far behind. now two days don't make major selloff, but clearly, you know, today's performance is sort of a knee jerk reaction to yesterday which was not so bad but very flat, and there just doesn't -- the feel-good factor just seems to have somehow dissipated at least for the moment. cheryl: hey, you know what? one of the things we're watching with regards to commodities, strength, was actually milk prices, jumping up, hitting new records. what's going on? >> you know, i mean, it is crazy. i'm not really sure, we don't follow milk very closely just because the volume's gotten so
low there over recent years, but considering how strong the dollar's been, any commodity that's rising is one to take notice of. when you have the dollar as strong as it is, it certainly is reigning supreme here today. we have pretty much every other major currency falling as it pairs up with the dollar. so if you have these commodities priced in dollar terms, it's something you certainly want to watch for. i think overall today what we've seen here, we have the treasury rate down, i should say the rates are up, the bonds are down and the equities are down, and we're trading under this notion that it seems as if people think these rates are going to rise sooner rather than later. and i really just don't see it. i see other fed members hinting at it, but i don't see yellen balking at all in her communication which is very deliberate, very measured that they want to see some real improvements in specifically wages within the employment sector and housing as well before they raise rates. i'm not buying into that narrative, i would certainly take advantage of the weakness
in the equity markets today. short-term traders that are looking to get in, this is a good spot. cheryl: let's go to the nymex and peter, what are you watching right now over at the nymex? what's your top headline? >> well, the big thing today is you had the brent down almost 100 points, down a full dollar while the wti held firm. and that could be because the pony express papeline that was supposed to be -- pipeline that was supposed to be commissioning failed testing yesterday, and it's 230-260,000 barrels a day, and now it's supposed to be delayed until november. cheryl: all right, guys, thank you very much. appreciate you coming to the floor show. there is oil, we're going to keep a close eye on the contracts as we move to the close. closing bell coming up 16 minutes from now. all right, talking about ford making a huge bet on aluminum. its new f150 trucks, will they be as durable and strong as the earlier f150s people love?
jeff flock got an an exclusive look at the new f150 of the future. he's going to be joining us live which is always good. and home tebow now saying -- home depot now saying it was the target of a major attack. why did it take a week to confirm a breach? one of the top experts on hack attacks is going to join me. he's got some answers. we'll be right back. ♪ ♪
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♪ ♪ cheryl: president obama is just beginning a very high stakes meeting with congressional leaders on a strategy to defeat the islamic terrorist group isis. he is seeking their support ahead of tomorrow's major address to the nation when he's going to tell americans about his plan to try to end the advances in iraq and syria. rich edson standing by at the white house. you've got details, i understand, on what they're going to be discussing in this afternoon's meeting which seems to me, rich, to be crucial ahead of the speech tomorrow night. >> reporter: it does, cheryl, and top democrat and top republicans, the congressional
leaders from the house and senate have just arrived at the the white house, meeti president obama. the discussion is on his isis strategy, one the white house has been previewing over the last few days and what a number of administration officials, military and intelligence officials will be briefing the full house and senate on over the next couple of days and, of course, president obama giving that prime time address tomorrow from the white house at 9 p.m. what the white house has said thus far has really highlighted its diplomatic efforts, its assistance to the moderate sunni opposition within syria, though it's been ruling out an awful lot, ruling out combat troops in syria, a massive u.s. troop police force within iraq and highlighting a very much reduced u.s. role. >> the president, as much as anyone else, has certainly learned the lessons that are evident from previous military activities in iraq. specifically those are that the united states cannot, again, at least it does not serve our interest to put the united states in a position in which we are bearing the load of the
responsibility for providing security in the nation of iraq. >> reporter: one key question remaining in what we expect they'll be discussing right behind us in the white house with congressional leaders is whether or not the president is asking for some type of military authorization. he's asking for congressional support, but that doesn't necessarily mean ab up or down vote that would give the president the authority to do whatever his strategy lays out. again, the president right now meeting with congressional leaders and tomorrow addresses the nation, 9 p.m. back to you. cheryl: okay, rich. i want to point out to our viewers one of the things the markets had been very nervous about and really americans in general, of course, is the situation with isis and what our strategy's going to be to deal with them. take a look at the dow right now, we are pushing session lows. we're sitting on 17,000, not anymore, we're at 16,999. again, you are seeing the markets right now take a little bit of a hit amid certainly geopolitical concerns and also you've got apple. apple is starting to fall as well, i do want to point that out. apple stock is beginning to
fall. so a lot of eyes are going to be on the president tomorrow night. you don't want the miss that speech by president obama. we are going to carry it right here on fox business. neil cavuto's going to be hosting our coverage, 9 p.m. eastern time right here on fox business network. all right, again, dow sitting at session lows, now down 115. we're going to be right back. also we're going to be talking about home depot. the company's finally admitting its payment systems were hacked. what, if anything, can companies like target, home depot do to protect themselves from hackers? we're going to talk exclusively with the founder and ceo of a cyber defense company coming up. and jeff flock has got exclusive access to the new ford 150 truck. what have you got for me, jeff? >> reporter: the apple introduction may be big, cheryl, but so is this. all aluminum. and i'm going to, in just two minutes, give you a look at this truck exclusively that no one has seen before, a look at this f150 that you've never seen.
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cheryl: all right, i want to point your anticipation to what i just mentioned, and that is what's happening with the dow jones industrials. we are just barely, and i mean barely as in two points off of session lows. we have not seen this type of intraday drop especially with the dow for about three weeks or so, since august 15th, to be more clear to you. we're dropping below 17,000, many of you watching saying it doesn't really matter, but it does psychologically, frankly, to a lot of viewers that are watching. also i want to show you the nasdaq can really quick because in particular, a part of the story with nasdaq is apple. apple was positive, it was higher. apple is now down more than 1.5%, and the nasdaq has taken a hit because of that. there is apple as i tell you that, of course, the stock dose back up. 98.67 right now. again, during the commercial break apple was taking a big hit, so volatility, let's just say that, on apple right now. all right, we're watching the markets, we're also watching
what's happening, of course, in the auto industry. ford motor kicking off a 26-city tour across the country introducing its brand new aluminum body f150 truck to all of its dealers. who's the guy in the video? fox business' jeff flock, and he's at the historic ford proving ground in romeo, michigan. love that video, jeff. >> reporter: inside the metals lab as we speak. you know, cheryl, fox business has expressed a lot of interest in this truck, of course, so has all of america, but we're getting an exclusive look at this truck. this is what the aluminum looks like, and, you know, i'll tell you with, eric peterson, who is masterminding the marketing of this vehicle, a lot of people concerned. is aluminum as solid as steel? show me this. >> actually stronger than steel, it's more departmenting resistant because we were able to upgauge it and make the aluminum thicker because it weighs less. actually a stronger piece but yet a lighter piece. >> reporter: cheryl, look at this, i'm holding this piece. i'm holding it with one finger,
this is an entire fender. it is very, very light. i also want to show you some of what we did -- oops, i just dropped it. on the road today, and we didn't dent it. and the other thing about it is it won't get rusty. i want to show you our test drive. i'll tell you, it was interesting. it's got a different feel, but it's still got a great truck feel, right? >> yeah, it's important. it's got to be a capable be truck. so when you take that weight, the 700 found out of the top of the truck, you lower the center of gravity so it's got better command, better performance, better capability -- >> reporter: you talked about 700 pounds. this is how light this is, cheryl, i've got to show you. this is just the aluminum body here, and this is me, not a strong guy. i am moving this truck myself right now with one hand because i'm holding the microphone in the other hand. that's how light it is. when you take that much weight out of it, if we translate that to reality, it's like three refrigerators, it's like 20
cinder blocks. taking that much weight out of the vehicle means you can put that much more weight into it to transport. >> and that's really what it's all about. our truck guys, they need more capability, they want more, they're doing things with their truck, so by taking the weight out of the truck, they can put more behind it. >> reporter: i want to show you what this looks like this terms of the old steel. that's a piece of old to steel. thin, right? and that's the new aluminum. aluminum lighter although thicker. >> exactly. and that's that proof of that gauge. you can put more metal into the truck, which is that's where it gets its thickness and heat treatment. >> reporter: and just so you know, there are still steel in this truck. this is the frame of the truck, and this is now, what, what do they call in? >> high strength steel. high strength steel on this truck has got about 78% in the frame, so more high strength steel, a stronger frame, but yet a lighter frame because it's lighter than common steel. >> reporter: gotcha. interesting to have driven in this now, or ridden in this today as you point out, cheryl,
the kickoff of a 26-city tour for ford. it's an unprecedented launch. you've never done this kind of an extensive launch before, trying to introduce the vehicle to the deal canners because these are the people that are going to have to sell america on america's favorite truck. >> right. we want to touch as many dealers and sales consultants as possible. 10,000 through this tour, give them firsthand experience of the truck, the materials, everything about it and get a chance to drive it. it's that firsthand experience that matters. >> reporter: gotcha. cheryl, it's been an illuminating day. this is a tremendously important vehicle for ford, for the american auto industry. it's the best selling vehicle in the u.s. auto industry for the past 32 years now. and, you know, you think if it's not broke, don't fission it, but -- fix it, but as mark fields said, the new ceo of ford, leaders lead. that's what they're trying to do. cheryl: i want to get into my ford f150 and go to all 26
cities, it's going to be less gas money. >> i'm going to put eric on the spot real quick, how soon are you going to tell us what the miles per gallon is? cheryl wants to the know. >> well, we work with the government and make sure when the epa labels are ready, that's when we'll release them. >> reporter: it'll be, certainly, before the end of the year which is when these will be in dealer showrooms. cheryl: why i know this, though, is because a lighter airplane means a more fuel efficient plane. i'm betting a more fuel efficient f150, and that thing's going to keep on selling. >> reporter: safe bet. cheryl: thank you very much. >> reporter: thank you, cheryl. cheryl: i'm a betting lady, what can i say? "the wall street journal" made a very interesting point, the glue, the adhesive that's used on these trucks as well as airplanes, phones, other items is actually a booming business. if you took a look at what companies like hb fuller, dow chemical, 3m, they're all benefiting from manufacturers swapping in glue for the screws, the bolts, and according to ihs,
the adhesive business has grown from a $1.5 billion to a $2 billion industry over the last ten years. so we're going to take a look at those stocks for you and kind of give you a sense of what those stocks are because you can invest in the glue that quos into a truck. -- goes into a truck. 27 minutes to go for you right now. you might call facebook mark zuckerberg's $200 billion baby. that's a big number. how many investors is he going to get on a company that was founded just over ten years ago? we're going to take you live to the new york stock exchange and find out where facebook's market cap has gone today. pretty big. and hackers seem to break into global companies just about every day. it doesn't stop. but there's a lot that firms, companies can do to protect themselves. are they taking these measures to protect themselves? and to protect you? coming up a fox business exclusive with patrick peterson,
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sectors really weighing on wall street financials. i wanted to bring something to your attention. this is facebook. look at this market cap, $197 billion. yes, i'm saying billion. and why am i talking about this? because facebook, ultimately, has turned out to be -- yesterday it closed above the $200 billion market cap. and with that it makes it one of the largest companies in the world behind verizon but ahead of toyota motor. actually made it at one point it was at $203 billion in the last 24 hours. it's the 22nd largest company in the world. this is all about mobile advertising, promotion. the trends that we are seeing going forward, and mark zuckerberg himself among the richest, the 13th richest person. i know that sometimes these get finagled throughout the day, we are seeing facebook to the downside. here's my facebook page, right? join on. but certainly continues the grow, and it's a stock that today is to the downside, but again, we should note facebook
one of the largest companies in the world to cross that 200 billion market cap though it is today below that level. you've got to wait for a good day to get it back above that level. cheryl: i am buying. that's a great picture of you on facebook, by the way. [laughter] >> i've got to take a good one, right? gotta try. cheryl: nicole, thank you very much. let's take a look at home depot right now, finally confirming it was, in fact, hacked. the official number of affected customers not even disclosed, but it's expected to be around 60 million. want to put that in per spect perspective for you. the hack attack on target affected 40 million cardholders so here's the question, will cyber threats ever be tamed or are they only going to get worse? bringing in for an exclusive interview patrick peterson. okay, i'm sorry, home depot seems to be with target happening in december of last year, home depot should not be the newest, biggest breach in cybersecurity, and it looks like they are.
>> i'm afraid it's a real tragedy. with target being the canary in the coal mine, everyone in the world had eyes on them. you would have thought every retailer in the world would have dusted off that playbook and said never again, and to have the news come out now nine months later is completely unacceptable. cheryl: okay. we should say that your company provides -- we were just talking about facebook, google, jpmorgan, i mean, these are your climates. >> yes. cheryl: you're not messing around. >> no. cheryl: home depot hasn't called you to say, hey, we've got some issues? they've got to bring in somebody to fix the issue. >> absolutely. we're focused on stopping e-mail cyber attacks, and i think everyone knows the target breach started with an e-mail cyber attack. we're still going to wait for the secret service and law enforcement to tell us the details on home depot. hopefully someday, we've been waiting a long time, but i'm sure that e-mail was involved, and it's time for companies -- cheryl: we don't know who broke into home depot, but, i'm sorry, first thought is going to be the russians. >> absolutely. cheryl: yeah? >> absolutely.
cheryl: is that what you think? >> absolutely. if you look at the different mos, russia and eastern europe tend to be a real nexus for financial crime, data breaches, credit card thefts. sure, there's a 1 in 100 chance it's someone else, but 10 to 1 you're absolutely spot on. cheryl: jpmorgan, i mean, obviously not just a company, they themselves were just the subject of a hack attack. >> yes. cheryl: so are we not feeling safe about jpmorgan either? >> no. i think it's tricky for the consumer because separating the forest from the trees, today's story about what's really going on out there is difficult. but jamie dimon, he stepped up and said in their 2013 annual report we're investing heavily, $100 million. it's a never ending battle, and we're not going to win all of them. so i think getting the consumer to understand, we have an adversary, the stock market's not up every day, and just like we're not all going to be perfectly safe every day, there's a reality, but i still
think jpmorgan is one of the real leaders. cheryl: which is is it? are companies just slow to the take? is are we not moving fast enough or are we never going to get ahead of -- we thought a lot of them were 20, 21-year-old kids that are breaking into major american companies. are we just not going to get ahead of them? >> i think, unfortunately, we're never going to live in a perfectly safe cyber world. they're innovating. apple spends billions of dollars to release a new technology, those cyber attackers are spending millions of dollars to come up with their own, it's not an iwatch, it's an ihack, and as soon as we beat them back, they go figure out how can we find a new weakness? some of the ways they're attacking us now if you had told me six years ago, i would have said that's science fiction, cheryl. that's madness. but because there's the monetary capitalist criminal motivation, they're innovating like wild. cheryl: we've had all this big news on apple, apple pay.
do i want to put my credit card on my watch if i'm going to buy an apple watch? should i feel safe? >> i don't think anybody knows yet was they made the announcement and said wait five months, and you can learn more about it. so i think the security community's wondering is this vapor ware? where's the beef? we're going to have to wait to find out how safe it is. cheryl: a lot of question marks. great technology, exciting, but i might as well just put my social security number on my blog, maybe i'll do that. patrick peterson, thank you very much. >> thank you. cheryl: well, you don't want to miss tomorrow. liz claman's going to be taking you through silicon valley, highlighting some of the hot new start-ups that could be the next facebook. you don't want to miss liz's coverage that's going to be here tomorrow live. start-up nation, liz claman, 3 p.m. eastern time tomorrow right here on fox business. closing bell, 16 minutes away. it is apple's day to shine. got new iphone 6 models and, of course, the highly anticipated apple watch has been
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cheryl: all right, apple shares are jumg as much as 4% after the tech giant unveiled a slew of hot new products in cupertino, california. shares had been pulling back just a little bit, the stock actually dipped about 1.5%, and then it just popped back up maybe in the last 15 minutes or so. ceo tim cook earlier announcing not one, but two new smartphones, the iphone 6 with a 4.7 inch screen, a 6 plus with
5.5 inch screen, a lot of buzz about those. apple's new iphones are going to start at $199, begin shipping on september 19th. perhaps the most exciting announcement, apple finally -- and i say finally -- can unveiled its long-anticipated smart watch. going to come in multiple colors, it's going to have scratch-resistant screens made of sapphire, apple watch going to start at $349, available early next year. finally, they introduced a new mobile payment system that's called apple pay that will come with every new iphone. it is set to launch within the u.s. next month. already apple pay is partnering with disney, whole foods, mcdonald's, mastercard actually a few months ago announcing they're going to be signing up as well. there is no crystal ball when it comes to these markets, especially on a day like today, but our next guest says if you can spot disruptive innovation, you'll be ahead of the curve. kathy wood, arc investments
chief investment officer, i like that, disruptive innovation. what does that heene? >> to us, technologically-enabled platforms that are going to change the way the world works in some way, shape or form. the way we do things, the way we work, the way we're entertained. cheryl: okay. i'm thinking the apple watch, and i'm thinking it's going to monitor my heart rate, tell me if i've got the flu, but health care, i would think, is disruptive in that regard. >> there's a lot of stuff going on in the health care space, and really the platform that has started that is dna sequencing. so the cornerstone company is alumina that's causing innovation. apple may participate. apple, i know, is working with the information services part of it. athena -- cheryl: athena health as well. so dna sequencing, basically going back and looking at what
is made up of the history to not just predict disease, but potential liqueur disease. >> -- potentially cure disease. >> right. understand what clusters of genes are involved in different cancers. and sequencing them and silencing those genes, really turning cancer from a killer into a chronic disease and, ultimately, ultimately maybe even a healer. i know that sounds crazy, but, you know, the multily case of genes -- mull application of genes -- cheryl: i think a lot of those could be interesting. what about somebody like a tesla? do you consider them a disruptive innovator? >> absolutely. cheryl: i think a lot of people kind of doubted him -- >> without a doubt. what i find so interesting about tesla is people, investors are saying, many investors are saying this is a bubble. we do not think it's a bubble.
what's so interesting about tesla is they have kind of walked through a door and have hardly any competition. and by that i mean because of solyndra and fisker and a123 and all of the things that went wrong with green, a lot of companies have stayed away from it. tesla has a battery system that no one else has, and no one else is copying it, at least that we know of so far. so they are running away with this market. they have the best car on the market. cheryl: that's interesting. also, too, you know, health care, automotive, but there's another sector that you watch as well. >> industrial innovation. industrial innovation involves robotics, 3-d printing, it involves space exploration, it involves battery energy storage, and then the other thing we're focused on is web x .0. the internet is the platform with mobile devices turbocharging it, where is that platform going to take us, how is it going to change our lives?
cheryl: and also we're looking at, like you say web x.0, does that play into the story of today? >> sure, apple is playing on that platform, the internet. it is one of the most important mobile devices out there so, sure, it's absolutely leveraging off of the internet. cheryl: so it's changing our life. >> absolutely. cheryl: well, kathy, thank you very much. i like the disruptive innovation theme of the investments, and i know, of course, you're with arc investments. >> thank you so much, cheryl. cheryl: speaking of investments, we are watching the markets. we're sitting at 17,000 once again but no matter what happens, the bell is going to ring anyway in about five and a half minutes. we're down triple digits right now. now that we finally know what apple had up its sleeve, what does one of the smartest tech analysts think of what yo saw and heard from apple? a piper jaffray agent is going to be joining us. david asman in the house, and i'll be joining him as well.
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with the mobile trader app. from td ameritrade. ♪ ♪ cheryl: you know what's so interesting is when david asman walk into the studio, the market starts to come back -- david: aw! actually, it is still a down market. it's not quite triple digits, but really the focus now is on apple and very interesting, nicole petallides can, how the stock went down almost immediately after the details of the watch. first, the stock popped a little when the watch came out, but then they saw the price of the watch and the fact that it anticipate going to come out until after the holidays. >> yeah. i'm going to be an old woman by the time this thing comes out. and that's one of the issues, it's a $350 item, basically.
this stock was wild today. it was above 103 and in the $96 range. heavy volume and now settling down about half a percent. cheryl: and also shares of annie's today, nicole, really taking a big jump. they've agreed to be bought out by a name we all know. >> general mills. an array of foods including betty crocker, natural foods, annie's is up 38. it was a $46 offer. that's why you see it at 46 and change, 820 million would be the value of the deal. david: we started focusing on one stock, apple, for a lot of reasons. it's the stock everybody's watching, but let's pull back, look at the holdout. home depot is really having a lot to do with why the dow's down so much, right? >> right. down 2%. the home depot story comets. they had a security breach, they acknowledged that, and when you talk about customer information and your privacy, this is ongoing. we talked about that with target, jpmorgan. you can see right now the stock's down 2%.
cheryl: and, you know, it's interesting, nicole, again as we move into the close and after it looks like apple and had taken a little bit of a hit, down 1%. a little bit of a comeback, like i said. david: little wit although we note that it is significantly further down percentage wise than the dow jones industrial average. dow jones looks like it might stay in double digits, although it could settle above that just down about 96 points. nasdaq down a full 40 points. that's almost a full percentage point. look at the small and mid-sized caps represented by russell 2000, down well over a percentage point, down about 1.17%. so it is not a good day but a lot of interest in specific stocks. what is happening at home depot and, of course, what is happening with apple. we have answers coming up. "after the bell" starts right now. ♪